An investor can nominate a person called nominee to whom his Mutual Fund Units will be transferred on his / her demise. Mutual Fund Units get transferred to the nominee registered in the folio on the demise of the Investor.
Nomination is now mandatory for new folios/accounts opened by an individual especially with sole holding and no new folios/accounts for individuals in single holding would be opened without nomination.
However, investors who do not wish to nominate must sign separately confirming their non-intention to nominate. Investor who don't want to mentioned nominee details need to sign declaration for not exercising the right of nomination in respect of units held by him/her.
Registering a nomination facilitates easy transfer of Funds to the nominee on the unfortunate demise of the investor. In the absence of the nominee, a claimant would have to produce a host of documents like a Will, Legal Heir ship Certificate, No-objection Certificate from other legal heirs etc. to get the units transferred. The process is simple if a nominee is registered in the folio.
Nomination ensures all rights and /or amount(s) payable in respect of the holdings in Schemes of Mutual Fund would vest in and be transferred to the nominee upon death of the Unit holder. The nominee receives the units only as agent and trustee for the legal heirs or legatees as the case may be. Investors should opt for the nomination facility to avoid hassles and inconveniences in case of unforeseen events in future.
Terms and conditions related to Nomination
The nomination can be made only by individuals applying for / holding units on their own behalf singly or jointly. In
case a folio has joint holders, all joint holders should sign the
request for nomination/cancellation of nomination, even if the mode of
holding is not "joint".
Every new nomination for a folio/account will overwrite the existing nomination.
An investor may make up to three nominations and even specify the percentage of the amounts that will go to the nominee. If the percentage is not specified, equal shares will go to the nominees.
A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the unit holder.
Nomination form:
.....png)
how to add nomination in mutual fund folio
ReplyDeleteWhile investing with mutual fund for the first time, you can avail nomination by filling up the 'Nomination' section, which is a part of the Common Application Form.
DeleteTo register a nomination subsequently, you need to complete the Nomination Form and submit to any of nearest mutual fund office.
Nomination form should be signed by all unit holders irrespective of the mode of holding.
should I nominate a minor in mutual funds?
ReplyDeleteYes you can, A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the unit holder.
Deletehow to check nomination status of mutual funds online???
ReplyDeleteIf you have online access for your mutual fund investment, then nomination status is available under your profile.
DeleteVery recently, i got online access to my mutual fund investment in HDFC MF, i was under impression that my nominee details are mentioned in that particular folio.
When i logged in, very first thing which i seen is pop up showing nominee details are not yet registered in that scheme.
Nomination details are also available in mutual fund account statement.
why nominee name is not shown in mutual fund statements?
ReplyDeleteI completely agree, nomination details are not shown in mutual fund statement as some mutual fund give information nominee is registered, but complete details are not mentioned.
DeleteIn order to check your nominee details best is call mutual fund customer care number and check and confirm the details.